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Piaggio Vehicles plans to roll out three-wheeler passenger vehicles from its newly inaugurated plant in Baramati by September.
Speaking at the inauguration of the Vespa plant here, Mr Ravi Chopra, Chairman and Managing Director of Piaggio Vehicles, said the company is considering the launch of three light commercial vehicle (LCV) models, including the three-wheeler passenger vehicle, in the next two years.
All three LCVs would be rolled out from the Baramati plant, he added.
Piaggio Vehicles is the wholly owned Indian subsidiary of the Italian Piaggio Group.
The company is developing two new diesel engines – 1 litre and 1.2 litres - at the new Baramati plant for both the European and the non-European markets.
Vespa LX 125
Company officials had said that they hope to double sales in the next two-three years. Last year, the global sales numbers of Vespa stood at 1.50 lakh units.
The Vespa LX 125 has been positioned as a premium segment scooter and is priced at Rs 66,661 (ex-showroom Maharashtra) onwards. It has been priced at a 40-50 per cent premium over its competitors such as Honda Activa, Suzuki Access and Mahindra Duro.
The Baramati plant has a capacity to roll out a maximum of 12,000 Vespa units a month, but is currently running at 10,000-11,000. “Depending on the demand, there could be a ramp-up in the plant. This could enable us to realise the full potential of the plant by the fourth quarter of this (calendar) year,” said Mr Chopra.
The company has invested about €30 million (approximately Rs 210 crore) in the plant.
The company plans to invest an additional €20 million (approximately Rs 140 crore) to double the capacity to 300,000 units a year by mid-2013. The plant employs around 3,000 people as of now.
Four-wheeler segment
The Piaggio Group has plans to enter the four-wheeler segment as well. According to group Chief Financial Officer, Mr Gabriele Galli, the company has already made an initial investment of about €150 million for the development of this segment. However, the plans are in the early stages and would require two to three years to fructify, he added.
Mr Roberto Colaninno, Group Chairman and Chief Executive Officer of Piaggio Group, said that the company does not plan on venturing beyond the LCV category and will look at new models to manufacture in the near future.
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